The Orora Ltd (ASX: ORA) share price has gained almost 20 per cent in the past year but is presenting investors with a good opportunity having dipped slightly in the past couple of months.
Orora shares are now trading at around $3.39, having shed about 3.2 per cent since late October.
The packaging company has a recent history of strong growth and looks well positioned to continue boosting profits.
Orora, with a market value just under $4 billion, reported revenue of about $4 billion for financial year (FY) 2017, up 4.9 per cent on the previous year.
The company has grown steadily since its spinoff from Amcor Limited (ASX: AMC) and has increased revenue by an average of about $200 million per year since FY 2013 when revenue was around $3 billion.
In FY 2017, Orora also increased its net profit after tax to $186.2 million, up 14.4 per cent on the previous year which helped to boost operating cash flow by 5.6 per cent to $331.5 million.
The company's strong balance sheet has allowed it to grow comfortably and Orora has made moves to further expand its operations in North America where it saw a 23 per cent increase in earnings in FY 2017.
Orora acquired three more businesses in North America in FY 2017, the Register Print Group, The Garvey Group and Graphic Tech, for a combined total of US$98 million which increases its presence in one of the company's key markets.
Orora shares are trading at about 23x earnings, while Amcor Limited shares are going for around 22.5x earnings and Pro-Pac Packaging Limited (ASX: PPG) shares are changing hands for 22.8x earnings.
When stacked against the competition, Orora shares appear fairly priced particularly given the company's steady growth and future prospects which look more impressive when weighed against other ASX packaging companies.
Citi analysts also recently raised their price target on Orora shares to $3.60.
Orora has been performing well and should continue to do so, as such the company is looking like a buy.
